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MINISTRY OF FOOD PROCESSING

INDUSTRIES

GOVERNMENT OF INDIA




BACKGROUND MATERIAL FOR
ECONOMIC EDITORS CONFERENCE

ON

OCTOBER 19, 2011
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SALIENT ACHIEVEMENTS OF THE MINISTRY OF FOOD
PROCESSING INDUSTRIES

1. Scheme for Infrastructure Development
To fulfil the need for creation of integrated and holistic
infrastructure for food processing sector, Ministry of Food Processing
Industries (MOFPI) had launched new Schemes in 11th FYP with strong
focus on creation of modern enabling infrastructure to facilitate growth of
food processing and creation of an integrated cold chain mechanism for
handling perishable produce. Under the initiatives of MOFPI for
strengthening infrastructure in agro and food processing sector, it had
launched the Mega Food Parks Scheme, Scheme for Cold Chain, Value
Addition and Preservation Infrastructure and Scheme for Modernization
of Abattoirs in the 11
th
Five Year Plan.
(i) Mega Food Parks Scheme
The Mega Food Parks Scheme (MFPS) is the flagship program of the
Ministry of Food Processing Industries (MFPI) during the 11th five year
plan. The scheme aims to accelerate the growth of food processing
industry in the country through facilitating establishment of strong food
processing infrastructure backed by an efficient supply chain.
The Mega Food Parks Scheme provides for a capital grant of 50
percent of the project cost in difficult and ITDP notified areas(with a
ceiling of Rs 50 crores). The grant shall be utilized towards creation of
common infrastructure in CPC and PPCs in the park. Such facilities are
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expected to complement the processing activities of the units proposed to
be set up at the CPC in the Park. Each Mega Food Park may take about
30-36 months to be completed.
Out of 30 Mega Food Parks proposed during the 11
th
five year plan,
the Ministry has taken up 15 projects under the Scheme so far. Of this,
Final approval has been accorded to 8 Mega Food Parks in the States of
Andhra Pradesh, Punjab, Jharkhand, Assam, West Bengal, Uttarakhand,
Tamil Nadu and Karnataka. The cumulative project cost of these 8 Parks
is Rs. 930 crore which includes total grant assistance of Rs.500 crore
under the Scheme. In-principle approval has been accorded to remaining
7 projects. In addition to these, 15 new Mega Food Parks are in the
process of Government approval.
(ii) Scheme for Cold Chain, Value Addition and Preservation
Infrastructure
The Task Force on Cold Chain set up by the Ministry of Agriculture
has identified a huge gap of 9 to 10 million tonnes of cold storage capacity
in the country.
Ministry of Food Processing Industries through its Scheme for Cold
Chain, Value Addition and Preservation Infrastructure has been
successfully addressing the above issue. The Scheme was approved in
2008 with an objective to provide integrated and complete cold chain,
value addition and preservation infrastructure facilities without any
break, for perishables from the farm gate to the consumer. The assistance
under the Scheme includes financial assistance (grant-in-aid) of 50% the
total cost of plant and machinery and technical civil works in General
areas and 75% for NE region and difficult areas subject to a maximum of
Rs 10 crore.
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In the first phase, the Ministry has approved 10 integrated cold
chain projects in 2008-09, which are already being implemented in
different parts of the country. Out of the 10 projects, 8 have started
commercial operation. Substantive value addition, reduction in wastage
and enhancement in farmers income is evident from concurrent
evaluation of the projects.
In the 2
nd
phase, 39 projects have been approved. The approved
projects envisage a total investment of about Rs. 850 crore which would
be creating cold chain capacity of about 1.60 lakh MT.
Taking note of the high demand and the gap in the requirement of
cold storage, processing, preservation and cold logistics facilities in India,
the Ministry is planning to upscale the Scheme and Planning Commission
has already accorded In-principle approval for the same.
(iii) Modernization of abattoirs
Ministry has approved 10 projects in 1
st
phase which are at various
stages of progress. Two projects have been completed. A proposal for up-
scaling the scheme is under consideration.

2. Scheme for Technology Upgradation/Establishment/
Modernization of Food Processing Industries.
Under the Scheme for Technology Upgradation/ Establishment/
Modernization of Food Processing Industries, financial assistance is
provided in the form of grants-in-aid for setting up of new food
processing units as well as Technological Upgradation and Expansion
of existing units in the country. Ministry extends financial assistance
in the form of grant-in-aid to entrepreneurs @ 25% of the cost of Plant
& Machinery and Technical Civil Works subject to a maximum of Rs.
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50 lakhs in general areas or 33.33% subject to a maximum of Rs. 75
lakhs in difficult areas.
The implementation process of the Scheme has been made more
transparent and decentralized from 2007 onwards.
Earlier all the applications for such grants were received by the
Ministry through the State Nodal Agencies. These applications were
then centrally processed and grants disbursed directly by the
Ministry. From 2007-08, the receipt of applications, their appraisal,
calculation of grant eligibility as well as disbursement of funds has
been completely decentralized. Under the new procedure, an
entrepreneur/applicant can file application with the neighborhood
Bank branch/Financial Intuition (FI). The Bank/FIs would then
appraise the application and calculate the eligible grant amount as
per the detailed guideline given to them by the Ministry. The Banks/
FIs appraise project and its recommendation for the release of grant
is transmitted to the Ministry through e-portal established for this
purpose. After the recommendation and requisite documents are
received from the Bank/FIs, the Ministry sanctions the grant and
transfer the funds through the e-portal itself. This has resulted in
faster sanction procedure and enlarged outreach of the Scheme.
In the 11
th
Five Year Plan a total allocation of Rs. 600 crores
was provided. Out of total allocation, an amount of Rs 488.51 crore
has been received so far including Rs.98 crore BE of 2011-12.
Ministry has utilized almost the entire budget allocated under this
scheme (except NER) and has assisted 2532 Food Processing Units so
far.
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Ministry has taken initiatives to create awareness in the
industry/entrepreneurs by advertisements, organizing investors meet
and special meetings in NER. In so far as general areas are
concerned, the Ministry has been continuously reviewing the status
and organizing meetings with the focal point banks on a quarterly
basis. Ministry has also engaged an agency (CMI) to maintain the
data and to monitor the scheme closely. Under this arrangement, the
details of all the pending applications along with their present status
has been put in the public domain on the website of the Ministry. Any
applicant can find out current status of his application by clicking on
to http://www.mofpi@nic.in e-portal-status of applications OR
http://cmi/mofpi/status.
This scheme has added huge processing capacity to the food
processing industry which in turn has resulted in significant
reduction of wastages.

3. Quality Assurance, Codex Standards and Research &
Development and Promotional Activities
In todays global market quality and food safety gives a
competitive edge for the enterprises producing processed foods and
providing services. Apart from domestic standards for food products,
processes and management practices, Codex prescribes international
standards for safety and quality of food as well as codes of good
manufacturing practices, which are accepted worldwide. Further,
equal emphasis is required to be accorded to R&D activities for
development of innovative products, cost effective processes and
efficient technologies for food processing sectors. The scheme for food
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safety, codex and R&D has been successful in making a dent in this
area in the country. The scheme comprises of following components.
(i) Setting up/Upgradation of Food Testing Laboratories (maximum
grant Rs. 2.50 crore per project). (22 projects assisted in XI
Plan so far)
(ii) Implementation of HACCP / ISO / GMP / GHP / Safety
Management System in food processing units (maximum
grant Rs. 15.00 lakh / Rs. 20.00 lakh per project in general
area / difficult area). (18 Projects assisted in XI Plan so far).
(iii) Research & Development in food processing sector. (40
projects assisted in XI Plan so far)
(iv) Promotional activities including advertisement & publicity.
(Rs. 46.78 crore spent in XI Plan so far)
4. Human Resource Development:
The Food Processing Industry is critical to Indias development
as it establishes a vital linkage and synergy between the two pillars of
the economy Industry and Agriculture. Demand for trained
manpower including entrepreneurs, managers, technologists, skilled
workers to cater to the growing needs of the food processing industry
is increasing day-by-day. Besides latest technology & diversification
and new ways of managing and marketing is required by the existing
food processing industry to face global competition.
(i) Creation of infrastructural facilities for running degree/ diploma
courses in food processing (maximum grant Rs. 75.00 lakh
per project). (33 projects approved in XI Plan so far)
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(ii) Entrepreneurship Development Programmes (EDP) (maximum
grant Rs. 2.00 lakh per programme). 846 EDPs assisted
during 11
th
Plan so far.
(iii) Setting up of Food Processing Training Centres (FPTC)
(maximum grant Rs. 6.00 lakh / Rs. 15.00 lakh per project
for single line/multi line products). (140 Centres assisted in
XI Plan so far)
(iv) Training at recognized national / state level institutes etc.
sponsored by MFPI or other training programme.

During 11
th
Five Year Plan, the Ministry is expected to provide
assistance for setting up of about 270 FPTCs, organize 750 EDPs
and facilitating need based professional development training
programmes. In addition about 55 Universities/Colleges/
Institutions would be assisted for creating infrastructure facilities for
degree/diploma courses in food processing.
V. Strengthening of Institutions
(i) Indian Institute of Crop Processing Technology - A National
Institute with International Repute
Indian Institute of Crop Processing Technology is a world class R&D
and Educational Institute under the Ministry of Food Processing
Industries, Government of India. The mandatory activities of IICPT are
teaching, research and outreach activities in post harvest processing,
preservation and value addition of agricultural and horticultural
produces. IICPT and its scientists are experts in their own fields of
research. IICPT has created in its main campus at Thanjavur world class
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research laboratories for conducting research in different areas of food
processing technologies.
IICPT focuses research in major theme areas to address problems
like: development of indigenous technology knowledge based food,
composite grains foods, energy saving in parboiling, improving milling
techniques of cereal grains, pulses, oil seeds and millets, food processing
effluent treatment, creating ready to use dry mix fermented batter for idly
and other Indian foods, new food product development based on grains,
fruits and vegetables, fortification of processed foods for making health
foods at affordable prices, development of new equipments for puffing,
multipurpose yard drying, parboiling, for producing hand pound rice,
reducing storage losses, economic utilization of biomass, food industries
by-product and waste utilization.
To encourage new entrepreneurs to participate in the business of
food processing and value addition, they have to be technically trained by
providing hands-on experiences. They need to see and work for
themselves on processing and value addition of foods. To fulfill all the
basic needs, IICPT has created a Hi-tech, state of the art food processing
incubation cum training center in its campus with the different product
lines. It has also been offering consultancy services for the industry.
Considering the necessity for the growth of food processing sector
and food processing industries and the future demands for trained
manpower in the areas of food processing, the Institute began offering
formal degree courses at bachelors, masters and doctoral levels in food
process engineering from 2009 10 academic year.
Some of the major achievements of IICPT in the last four years have
been as under:-
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(i) Filed 11 patents and got 4 patents approved.
(ii) Developed Mobile Processing Unit for Tomatoes.
(iii) Conducts approx 320 one day outreach programme for farmers
all over the country.
(iv) Developed 10 new products and done their commercial testing.
(v) Established a Food Testing Lab of International Standards at
Thanjavur.
(ii) National Meat and Poultry Processing Board
The Government of India established the National Meat and Poultry
Processing Board on 19th Feb 2009.
The Board is an autonomous body and would initially be funded by
the Government of India for 3 years and would be managed by the
industry itself. The Board has 19 Members including CEO of the Board.
The Chairman is from the industry.
This industry driven institution has been launched to work as a
National hub for addressing all key issues related to Meat and Poultry
processing sector for the systematic and proper development of this
sector. The Board serves as a single window service provider for
producers/manufacturers and exporters of meat and meat products, for
promoting the meat industry as a whole and it would result in large
number of employment opportunities.
Some of the major achievements of the Board in last two and half years
are:
(i) Establishing a world class Meat Products testing lab.
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(ii) Conducting nearly 40 one day training progammes every year for
meat workers (Butchers) all over the country.
(iii) Developing a model for a modern meat shop.
(iv) Arranging two National Conferences and five experts meet.
(iii) Indian Grape Processing Board
The Union Government in 2009 gave its approval for the
establishment of the Indian Grape Processing Board (IGPB) at Pune,
Maharashtra which is close to the principal grape growing/processing
areas in the country. The 15 member Board that is led by an eminent
professional from the Industry has been registered under the Societies
Registration Act, 1860 at Pune.
The important functions and objectives of the Board are as under:
To focus on Research & Development, Extension, and Quality up
gradation, market research and information, domestic and
international promotion of Indian wine.
To foster sustainable development of Indian Wine Industry
To formulate a vision and action plan for the growth of Indian Wine
Sector including research and development for quality upgradation
in new technologies/processes.

During the two years of its existence, the Board has focused on the
promotion of Wines of India in the domestic as well as international
market by participating in important and relevant exhibitions/fairs,
consumer awareness & training programmes, undertaking advocacy work
with the various State Governments/ Central Ministries on various issues
related to taxes/levies and promotion aspects.
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(iv) National Institute of Food Technology, Entrepreneurship &
Management (NIFTEM)
The Government in 2006 approved setting up of NIFTEM at an
estimated cost of Rs. 244.60 crore including foreign exchange component
of US $ 8.1 million. Further, Government in April, 2011 approved revision
of the estimated cost for setting up of NIFTEM from Rs. 244.60 cr to Rs.
479.94 cr.
Since the legal status of NIFTEM as a Company was creating
hurdles in obtaining statutory recognition as a Deemed University
from UGC for running its Academic courses, the government has
approved:
Registering NIFTEM as a Society.
Transfer all assets & liabilities from the Company to the
Society
Winding up of NIFTEM Company.
In pursuance of above decision NIFTEM Society has been
incorporated on 19.05.2010. Its Assets & Liabilities have been
transferred from the Company to the Society w.e.f 11.11.2010. The
winding up process of the Company has been initiated.
NIFTEMs Mandate
NIFTEM would work as Sector Promotion Organisation/
Business Promotion Organisation of the food processing sector. The
other major objectives of NIFTEM are:
Working as a One Stop Solution Provider to all the
problems of the sector.
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Working for Skill Development and Entrepreneurship
Development for the sector.
Facilitating business incubation services with its ultra
modern pilot plant for processing of fruits and vegetables,
dairy, meat and grain processing.
Conducting Frontier Area Research for development of the
Sector.
Developing world class managerial talent with advanced
knowhow in food science and technology.
Providing intellectual backing for regulations which will
govern food safety and quality and at the same time foster
innovation.
Functioning as a knowledge repository on various aspects of
food processing such as product information, production and
processing technology, market trends, safety and quality
standards, management practices among others.
Working for upgradation of SME food processing clusters.
Facilitating business incubation services with its ultra
modern pilot plans for fruit and vegetables, dairy, meat and
grain processing.
Promoting cooperation and networking among existing
institutions within India and as well as with international
bodies.
Construction of the campus, recruitment of faculty and other
steps to make the Institute fully functional from the next year are
being taken.

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NIFTEM Website

The NIFTEM website is registered under the domain name
niftem.ac.in with the URL address www.niftem.ac.in for public access.
Skill Development: Short term Training Programmes
NIFTEM started its activities under Skill Development by
conducting the short term training programmes from 20
th
-22
nd

July2011 and 19
th
- 21
st
September, 2011.
Outreach programmes: NIFTEM has also been conducting nearly 20
outreach progammes every year all over the country with the help of
its knowledge partners.
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